The boss of fintech debt collector Ophelos said the cost of living crunch would lead to a surge in demand for its services this year as it revealed a fresh £5m funding round today to double down on growth.
Amon Ghaiumy, founder of Ophelos, which uses AI and personalised payment plans to help firms collect overdue debt, said the cost of living crisis would lead to an uptick in new business for the firm as more companies look to recover debt from consumers.
“Naturally, we expect more business to come out of this economic environment,” he told City A.M.
“The amount of credit is growing and we are seeing a general change in the way people borrow money. But the opportunity is in the conversation around debt changing.”
He added that the growth of the firm over the next few months was “not something I am particularly comfortable with”, but the cost of living crisis could be a “catalyst” to changing the hostile approach to debt collection that has dominated the sector until now.
“There is dire need for automation and better use of technology by businesses in this space, rather than on relying on antiquated debt collection agencies,” he added.
The new £5m funding round, led by AlbionVC, will now be channelled into doubling the size of its team in the next year and expanding its debt resolution automation platform, he said,
Ophelos client base includes BNPL providers, banks, credit firms and three of the largest energy providers in the UK. Ghaiumy told City A.M. that demand was rising across every area of its client base.